Four years of big crops in the U.S. and the world have brought some economic pain for farmers in the form of prices that, in many cases, are below the cost of production. Low prices are serving to stimulate demand, though, and they will ultimately be self-curing.With USDA’s pending 12 September release of the monthly WASDE, futures trading this week will no doubt be dominated by expectations of its fresh yield and production estimates for U.S. corn and soybeans. The discussions over the size of this year’s presumably record crops will continue until at least November. By that time, it is assumed that harvests will be far enough along to make the market comfortable with its yield and production assumptions. The September WASDE is a just a st...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.